"When in doubt, observe and ask questions. When certain, observe at length and ask many more questions."
Created this thread as a one stop solution for all members so that all the doubts wherein any conceptual clarification is required can be solved here.
@THE_MECHANIC No. Exactly 5 wala condition won't be met as the 6th one will invariably be the correct envelope. So ,the prob is 0
I didn't thought that way.......thanks for the que
@ArchAngel96 2016 pyq: How many numbers are there bw 100 and 300 either begin wit OR end with 2?
can you solve by your this approach like above?
What are the components of M0 ( high powered money ) ? Getting different things from different places.
EDIT : More confused why the people's deposit with the Banks is not counted, like say if I had deposited 100 rs, in which 20 is kept as CRR, 20 for SLR, 20 is given as loans , then why remaining 40 is not counted?
Just remember and understand what are components of M0, no need to get into the depth. The more you overthink, the more likely you'll get it wrong.
What are the components of M0 ( high powered money ) ? Getting different things from different places.
EDIT : More confused why the people's deposit with the Banks is not counted, like say if I had deposited 100 rs, in which 20 is kept as CRR, 20 for SLR, 20 is given as loans , then why remaining 40 is not counted?
@sstarrr Instead of rattafying all the components of M0 have a simple understanding that M0 is the monetary base which means the total liability of RBI. It does not change with the deposit creation unlike the money supply( m1,m2,m3 etc.). As, for Rbi the liability remains the currency issued by it, a new deposit creation is liability for commercial bank not RBI.
Coming to your question->If you deposited money i.e rs 100, it will have no effect on the monetary base as the liability of RBI still remains Rs 100 as the deposit is not a liability for RBI and the Hard currency has just changed hands from public to bank.
I hope you have the clarity now?
Divide into all the probable cases from each Amit and his wife's pool of friends and then add all the ways.
There will be 3 different cases.